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There are many factors that determine how to receive lower interest rates on mortgages. If you are currently in the application process, and you are trying to lock-in a low rate, you must look at some factors that affect interest rates Credit Scores Your median credit score has a tremendous impact on interest rates. Obviously, the higher your credit score, the lower the interest rate you will receive. The opposite is true; if you have a low credit score the interest rate you pay on the loan will be higher. Determine your credit score before the application process by ordering your credit report form the three reporting agencies, TransUnion, Experian and Equifax Debt-to-Income Ratio and Loan-to-Value Ratio If the percentage of your income that goes toward your debt is higher than 38 percent, you can expect to pay a higher interest rate. Determine your percentage by dividing your current debt by your gross income and the figure calculated is the debt-to-income ratio. Also, compare homeowners insurance quotes, the loan-to-value ratio plays a big role in interest rates. Also known as the LTV, this percentage is the loan amount divided by the appraised value of the property, or the sales price. Again, the higher the percentage, the higher the interest rate you will pay. The lower the percentage, the lower the interest you will pay during the life of the loan.

One of the most important things you can do as a new homeowner is to buy a house that you will actually be able to afford. Many people nowadays think that their monthly mortgage rate is low until they have to start paying it. If you’re finding that you need to make massive cuts in [...]

Too many people are losing their homes to foreclosure. The reason a lot of people go into foreclosure is because they simply do not have the money each month to pay their mortgage. Homes can be quite expensive and the mortgages attached to them once you buy them can be even worse. Because of this, [...]

There are several factors that cause you homes estimated value to go down. One is living in a neighborhood that is considered depressed. This basically is defined as the area has taken a turn for the worse and home values are plummeting. Also, the overall housing market causes your estimated value to go down. Take [...]

If you want to buy a new home, you should determine how much you can afford to pay each month. There are many online calculators that can help you determine this amount. You can also contact a mortgage company and get qualified. There are good prices for homes that have been foreclosed upon. Foreclosures often [...]